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Reasons to Hold Broadridge (BR) Stock in Your Portfolio

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Broadridge Financial Solutions, Inc.’s (BR - Free Report) shares have gained 6% in the past month. The company’s earnings for fiscal 2022 and fiscal 2023 are expected to grow 12.2% and 9.9%, respectively.

Factors That Auger Well

Broadridge has a consistent track record of rewarding shareholders through dividends. In fiscal 2021, the company returned $261.7 million in dividends. It paid out $241 million, $211.2 million, and $165.8 million of dividends during fiscal years 2020, 2019 and 2018, respectively.

The company’s business model ensures significant recurring-fee revenues, including contributions from net new business, internal growth and acquisition-related synergies. In the second quarter of fiscal 2022, recurring-fee revenues of $798 million increased 19% year over year and contributed 61% to total revenues.

The 2021 acquisition of Itiviti expands Broadridge’s back-office capabilities into the front office and deepens its multi-asset class solutions. The AdvisorStream buyout is helping the company boost revenues by providing personalized and consistent client communications.

Some Risks

Broadridge has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter fiscal 2022 was $281 million compared with the long-term debt level of $4.2 billion.

Zacks Rank and Stocks to Consider

Broadridge currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , NV5 Global (NVEE - Free Report) and Clean Harbors (CLH - Free Report) .

Cross Country Healthcare sports a Zacks Rank #1 (Strong Buy). The company has a long-term earnings growth of 6.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 67.2% in the past year.

NV5 Global also carries a Zacks Rank #1. The company has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.

NV5 Global’s shares have surged 38% in the past year. The company has a long-term earnings growth of 14.2%.

Clean Harbors carries a Zacks Rank #2 (Buy). The company pulled off a trailing four-quarter earnings surprise of 43.2%, on average.

CLH’s shares have jumped 20.8% in the past year.

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